Nasty bad results
Achieved record average production of 4,315 boe per day (99% light oil) an increase of 28% from 3,358 boe per day for the three months ended March 31 , 2012. Average production for the first quarter 2013 increased by 23% compared to Q4 2012 (3,510 boe per day);
Thrilling, they spent over $100 million in the year to increase production by a measly 957 BOE/day. LOL Plus, add more share dilution to the mix. Effectively 8% more shares outstanding and over $100 million more debt. If the water floods do not work, the company is toast because they cannot afford to spend another $100 million this year for a tiny production increase.
And then look at this waterflood news:
"Pinecrest has chosen to truck the injection water to each new scheme. Consequently, these additional water hauling costs have contributed to higher operating costs during the first quarter"
How can you possibly make any money when you have to truck water for your waterflood and how much water can you be injecting if you have to truck it in?
Hey, but just my thoughts, after all, I am likely wrong as I keep reading about these types of plays making the USA energy self-sufficient in the future.